Thursday, May 20, 2021

Fluid Milk and Cream - Western U.S. Report 20

In California, milk output is following seasonal patterns and starting to ebb again after     flowing strongly earlier this month. Class I orders are level. 
Milk production is flat in Arizona. Class I demand is down. Some contacts have relayed instances of handlers pushing back on milk as customer inventories are growing. 
Output is level in New Mexico, and Class I and II demand are down slightly. Balancing plants are clearing heavy volumes, and holdover numbers continue to decrease. 
Weather in the Pacific Northwest is optimal for cow comfort, and milk is abundant. Industry contacts say a long tail is expected as peak flush begins to level off. Double-digit overbase programs are in place to help keep milk in check. Some bottling plants are running at capacity. 
Milk production is strong in the mountain states of Idaho, Utah, and Colorado. Class I orders are steady, and there is healthy Class II and III demand. Condensed skim spot sales are limited, but contracts are steady. 
Cream supply is meeting demand. Ice cream continues to soak up much of the available supply, but butter churns are attracting enough cream to maintain seasonally decreased production levels. There is some anxiety, particularly in the Southwest, about cream availability later this summer, but for now, plant managers are not relaying any sourcing difficulties. Cream multiples dropped a few points at the top of the range this week.

     Western U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.0500 - 1.3000



Tuesday Morning Dairy Market Update - Limited Trade Activity Expected

OPENING CALLS: Class III Milk Futures: 2 to 5 Lower Class IV Milk Futures: Mixed ...